3 branch chiefs come together, agree on $173 million budget proposal

WINDOW ROCK

After discussion and coming to an agreement, the three branch chiefs came together to sign what they consider a recommendation for the 2017 General Funds Budget of $173 million.

During the Budget and Finance committee meeting, Navajo Nation President Russell Begaye, Speaker LoRenzo Bates, and Chief Justice Allen Sloan signed the recommendation saying that this was what they see fit for the financial operation of the Navajo Nation government and chapters.

Of the monies allocated, the executive branch will receive $102 million; legislative branch will get $14 million; judicial branch will receive $13 million; chapters-infrastructure and capital will get $3.7 million; chapters-non-administrative will get $11 million and fixed cost is at $20 million; also external funds cost match is $7.5 million.

With anticipated revenue at about $151 million, $22 million from the Permanent Trust Fund interest will be withdrawn to cover the $173 million in expenses.

“We did have moments where we thought we were in huge deficits,” said Begaye. “We wondered if we were going to survive and how many layoffs would there be. But, the Permanent Trust Fund came in, set aside years ago … so today we’ll be benefitting from the initiative that former council members took.”

Bates said that there is still a projected shortfall of $27 million for 2018 and suggested to the committee they need “to step up to the plate and come up with other alternatives” when it comes to trying to prevent this shortfall or cushion the blow. With this 2017 budget, $2.8 million will be held in a contingency account for FY2018.

“Obviously, the (decline of the) coal industry, the oil industry has and will continue to have a tremendous impact on revenue and strain on the Navajo Nation,” said Bates. “It’s also expected with this nation between the three branches we need to look to alternative forms of revenue.”

The Permanent Trust Fund was established in 1985 (see story on Page A4). This year, legislation was approved to make $150 million available from the trust fund interest with a five-year expenditure plan. This legislation took many attempts in the course of three different administrations; Budget and Finance Chair Seth Damon (Baahaali/ Chilchiltah/Manuelito/Red Rock/Rock Springs/Tsayatoh) sponsored the successful last attempt to get it approved by council.

“If it wasn’t for the Budget and Finance Committee working with the President’s Office this $22 million, that we did not have this year, we wouldn’t have had that,” said Damon. “If the Permanent Trust Fund five-year plan did not happen there would be from anywhere of 60 to 300 jobs we would’ve lost.”

Council Delegate and new appointee to the Budget and Finance Committee Leonard Tsosie (Littlewater/Pueblo Pintado/Torreon/Whitehorse Lake/ Baca/Brewitt/Casamero Lake/Ojo Encino/Counselor) expressed his disagreement with the budget saying cuts need to be made.

“This is a waste and cut it,” said Tsosie. “Divert the funds to other needs, that the Navajo people needs. We have to make it easier to approve the land leases, and have the guts to say this is where we are going to develop.”

Damon emphasized that this is just a recommendation from the three branch chiefs, and with other needs, this budget may change. But he agreed with Tsosie that cuts should be made for certain programs.

“There are some things in this fiscal budget that are overfunded and some things that need to be defunded,” said Damon. “We need police officers out there, we need waste management personnel … The overall gist is to work with senior centers … Put more dollars in our youth summer program.”

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